ALOR SETAR: Menteri Besar Datuk Seri Muhammad Sanusi Md Nor today challenged the Penang government to prove an existing agreement between both states which says Penang is not obliged to pay Kedah for extracting raw water from Sungai Muda.
Sanusi said prior to 2006, it was known that no party was made to pay anyone for using water resources, including between states.
However, he stressed that things changed after the Water Services Industry Act (WSIA) 2006 was enforced, with the state governments given the full authority on water resources, while the National Water Services Commission (SPAN) acted as the regulator.
"Yes, prior to that nobody had to pay for raw water because there was no WSIA. But after the WSIA was enforced in 2006, water resources fell under the state authority and an operator was appointed to manage water supplies.
"The state governments have the authority over water catchment areas, river basin and water flow. This means any party which benefited from water resources has to pay the authorised party," he told reporters at Wisma Darul Aman here today.
Sanusi was responding to a statement issued by the Penang Water Supply Corporation (PBAPP) recently that Penang was not obliged to pay Kedah for extracting raw water from Sungai Muda which originated from the Ulu Sungai Muda water catchment in Kedah.
Its chief executive officer Datuk Jaseni Maidinsa had said raw water extraction by PBAPP was being done on Penang's side of the Sungai Muda river, based on the Kedah and Penang Act (Border Amendment) 1985 (Act 325) which did not require charges imposed for extracting raw water.
Sanusi pointed out that Penang and Kedah did not have any legal agreement to prove there were no charges required for extracting raw water from Sungai Muda and the Ulu Sungai Muda water catchment.
"The enforcement of the WSIA in 2006 supersedes any prior obligation, so we should not be talking about old matters, it is 2022 now. I can't say for sure whether the deal (claimed by PBAPP) existed or not, if Penang has it (the document) please show me.
"I am made to understand that there was a drafted agreement because Penang was applying for loan facility from the international bank, but I am not sure whether the agreement existed. If they have it, please show proof of it," added Sanusi.
State-owned company, Syarikat Air Darul Aman (SADA) is paying Kedah Water Resources Board to use raw water in Kedah before supplying it to consumers.
Early this month, Sanusi in his New Year's day message, announced that his administration had appointed a panel of lawyers to manage compensation from Penang for raw water usage.
He had said it showed his administration's seriousness in the issue after their request was unheeded by Penang. Kedah had previously sought RM50 million payment from Penang for raw water usage.
In response, Penang Chief Minister Chow Kon Yeow said Penang was ready to face Kedah in court to resolve the issue.
